Category

Frugal Living

Early Retirement, Frugal Living, Lifestyle

Get There Before You Arrive

How long does it take to crawl out a hole you dug? How long to formulate a plan? Execute it? Reach your goal? Financial independence (FI) is a goal most people have. Some want it bad at a young age and work toward that goal. Others wait until Father Time ticks closer to the traditional retirement age. Still others get a wakeup call when their body fails in some way.

Before this blog I was a tax Endorsed Local Provider (ELP) for the Dave Ramsey organization. His story resonated with me. I agreed with Ramsey that debt is the acid which destroys the vessel that holds it. Ramsey is fanatical against any kind of debt; I am a bit more moderate in the faith. Still, debt is a problem for many people.

Before FI can be achieved debt first needs to either be eliminated or seriously curtailed for most people. The Ramsey plan is to eliminate all debt and invest in actively managed mutual funds offered by a financial advisor. If you read that last sentence carefully you will begin to understand why I could no longer in good conscious be a Dave Ramsey ELP. Ramsey’s philosophy is right on so many levels and wrong on so many more.

Debt in and of itself is not bad. It’s just a thing. Too much debt is the real issue. Credit card and similar high interest debt is caustic, no doubt. A home mortgage can make all the sense in the world. Even a small, short-term business loan is a positive in many instances. A blanket faith in no debt is something I don’t subscribe to. When very wealthy people borrow for a home or investment it is frequently the right choice. Borrowing $10,000 for working capital in your business instead of selling a profitable income producing investment I will argue is a good call, especially when you consider the tax consequences.




Continue reading

Related posts
You Still Get Paid
August 9, 2017
Intermittent Fasting Versus Long-term Fasting
August 7, 2017
You Can Do Anything . . . Just Not Everything
August 4, 2017
Early Retirement, Frugal Living, Lifestyle, Taxes and Investing

Word is Out

Today The Wealthy Accountant has been exposed in his first ever podcast! (Why am I talking in third person about myself?) In January at Camp Mustache SE Jonathan asked me if I would do a podcast with ChooseFI. Brad loved the idea too. I agreed. A month ago the podcast was recorded. Then, through the magic of editing, Jonathan and Brad made me look good. Thanks guys!

Today is Memorial Day in the States and my intention was to take a day off from my publishing schedule, but with the podcast out I wanted my kind readers to have a chance to enjoy the podcast.

Enjoy, everyone. I’ll be back Wednesday with a Camp Mustache IV roundup.

P.S. I enjoyed doing the podcast and am open to doing more for other podcasters too. (Brad and Jonathan nailed me down for additional podcasts for ChooseFI.)



Related posts
How to Save Money with a Do-It-Yourself Home Energy Audit
August 21, 2017
Inflection Point
August 18, 2017
The Hidden Tax: Transaction Costs
August 14, 2017
Frugal Living, Lifestyle, Small Business

The Knuckle Dragging Neanderthal Meets Uber and Airbnb

Tax Collector? They opened an office for me when I visited Florida!

Earlier this year Mrs. Accountant and I attended Camp Mustache in Gainesville, Florida. We were offered a ride to the Camp, but we also had several additional days planned around the event. Renting a car in such a situation is expensive since the car would just sit there for days while my wallet was financially abused.

My youngest daughter rolled her eyes when I mentioned I needed the phone number to the Gainesville taxi service. She grabbed my phone and started working on it. This is an unusual event for anyone who knows me. I use my phone as a phone. Period. I don’t care about, nor do I want to know about any of the other things smart phone can do. I make my own breakfast, thank you.

In a few minutes my daughter completed her assault on my virgin phone. She added an app to my phone. (To this day I have no idea what an app is. Whenever the kids talk about apps I joke that we are living on The Planet of the Apps.)

I told her it was nice of her to put an app on my phone, but I’ll never use it. Another eye roll. “Here, dad,” she said pointing to the Uber icon now conveniently located in the middle of my screen. “All you do is touch the icon and tell the phone where you want to go.”

Huh?

Well, my fingers don’t work well with all the small letters and stuff on a phone so I have made a habit of avoiding the issue. Now I find out I can talk to my phone and it responds. Awesome!

I know, I know. You readers are rolling your eyes like my daughter. This stuff has probably been around for a long time. Somehow I missed it. I refuse to blame my stubbornness on “missing it” even though it is probably the reason why.




Continue reading

Related posts
How to Save Money with a Do-It-Yourself Home Energy Audit
August 21, 2017
Forensic Accounting: The High Paying Part-Time Business
August 16, 2017
Intermittent Fasting Versus Long-term Fasting
August 7, 2017
Frugal Living, Lifestyle

Your Money or Your Wife

Divorce and money.

Warning: What you are about to read will be disturbing to many. Women and children should leave the room now. Men with a queasy stomach should also take a step back. It’s been two weeks since I dropped the f-bomb. The drought is over. I will use the f-bomb today in its correct dictionary definition to illustrate an important issue. This post is so volatile LinkedIn will not allow you to post this to their site even though your life depends on it. Facebook is good with it, however.

Money is the leading cause of divorce in the United States and in most Western countries. Marriages survive infidelity better than money problems. The worst part is how expensive divorce is and since money issues are the leading cause of divorce, it doesn’t solve the problem.

Then we need to think of the children. They suffer disproportionately. Adults have at least some control over their actions and the outcome. Children are helpless victims in the middle of elevated negative emotions. The damage is significant and lifelong.

Every marriage has its challenges. Forty-one percent of first marriages end in divorce. Abundant data on divorce exists, but there are large discrepancies in some of the data. It is also hard to put an exact number on the percentage of marriages that will end in divorce when the married couple are still alive. Using the number of divorces in a year compared to the number of marriages is useless. Still, many marriages end in divorce, statistics aside. Money is a large factor in divorce and divorce only exacerbates money problems.




Continue reading

Related posts
How to Save Money with a Do-It-Yourself Home Energy Audit
August 21, 2017
Inflection Point
August 18, 2017
Forensic Accounting: The High Paying Part-Time Business
August 16, 2017
Frugal Living, Lifestyle

Your Garbage is Killing Me

Dreams are what make life worth living. As the years stack up we can look back at our lives and see the progression as life moves toward where we are today. Mistakes of yesteryear lose the edge of anxiety while still providing plenty of experience to draw from. What seemed like a good idea back then is painfully obvious today.

And then there are the things which blindside us. A perfect plan executed with precision yields the results we want before life throws one of the curve balls we hear so much about. Today’s story is about a man, me, who did everything right in this instance and still took a swift foot to the crotch.

So the record is straight, it’s your fault. Well, not exactly your fault unless you live in NE Wisconsin, but still your fault because you did it in your own community. Shame on you for acting the way you do. The worst part is you hurt neighbors and friends and now it will be your turn to stand still with feet slightly apart as the community takes a running start as they drive their foot home.

You’re not going to like what I have to say, but you must hear it. This is important. Your happiness is at stake.




Continue reading

Related posts
How to Save Money with a Do-It-Yourself Home Energy Audit
August 21, 2017
Inflection Point
August 18, 2017
Intermittent Fasting Versus Long-term Fasting
August 7, 2017
Early Retirement, Frugal Living, Lifestyle, Small Business

The Dangers of a Side Gig

Tax season is officially over and not a moment too soon. As much as I love the work, when months go by without a day off it begins to wear on me. The worst part is the sitting. Too many hours planted in a chair coupled with sleep deprivation and health is not getting the attention it needs.

Loving something as much as I love tax work is also a challenge for people around me. Mrs. Accountant is an angel, allowing me the opportunity every year to disappear for months to help complete strangers and semi-strangers with their tax, accounting and financial problems. My daughters have learned from an early age dad is a very intense man when it comes to his work.

Work has never been a four letter word for me. (Considering my profession you would think I could count to four better.) Growing up on a farm meant everything was work, but not work. Running to the creek to fish was something you did. Planting in spring was fun, not really work. Harvesting was an addiction; sleep was hard to achieve until the crops were off the field. I know of no greater pleasure than watching a barn filled with bales of hay, placed there by my own hands. There is no greater thrill than to see the milk cooler fill each day to the rim. A full bulk tank meant money, and therefore, life. It was a good life and I had no idea what the real world was like outside my vision horizon.




Continue reading

Related posts
How to Save Money with a Do-It-Yourself Home Energy Audit
August 21, 2017
Inflection Point
August 18, 2017
Forensic Accounting: The High Paying Part-Time Business
August 16, 2017
Frugal Living, Lifestyle

The One Guaranteed High-Return Investment You Don’t Own

Every investment, even guaranteed ones, require priming the pump. Before you get paid by your employer you work; before you get paid a dividend or receive capital gains you must invest in the index fund first; before you get paid rent you need to buy the property and prepare it for tenants; before guaranteed government bonds pays you a penny in interest you must first buy the bond. You only get something out if you first put something in. This is true in every part of your life.

I grew up on a farm and after a few years living in town I moved back to the countryside where I feel happiest. Town still has a magical pull. Living in town means everything I need is close by. I can bike everywhere. The need for a car when living in town is minimal. If I lived in town I wouldn’t own a car. For long trips I would rent a vehicle. Uber, my bike and legs would handle 99% of my transportation needs.

Living on a small farm has advantages. The cost of living further from town is offset by the amount of free food, or nearly free food, I get. Raising my own meat (beef, chicken, fish and pork) means I know what is in it. Abundant garden produce means healthy living while the crops are in season. Asparagus in spring, radishes and other fast growing vegetables follow, and apples, apricots, cherries, peaches (yes, peaches in Wisconsin!) and grapes round out the abundant autumn harvest. There is so much good food and it is all free or nearly so. Too bad it doesn’t last all year round.

Continue reading

Related posts
How to Save Money with a Do-It-Yourself Home Energy Audit
August 21, 2017
Inflection Point
August 18, 2017
Forensic Accounting: The High Paying Part-Time Business
August 16, 2017
Early Retirement, Frugal Living, Lifestyle

Spending versus Cash Flow Meets the Debt Bomb

“It’s not working.”

A long time client started reading this blog and subscribed wholeheartedly into the idea of saving half her income. She discovered the blog early so she had nearly a year of effort under her belt. Student loans were the worst part of her debt, but credit cards and a mortgage also weighed heavily on her financial plan.

Saving half your income is the floor, not the ceiling. In this case, my client and her husband earn nearly $100,000 a year. They wanted to cut their spending to my levels using my yardsticks for spending. They are down to the mid 40s, a very good sign. The lament, however, has me concerned.

The only way this works is to be consistent. Years of hard work can be destroyed by a short-term spending binge. A new expensive car, a cottage up north, a trip to the casino and a new set of furniture can all be spent in a single month. The penalty will take years to fix.





Continue reading

Related posts
Inflection Point
August 18, 2017
The Hidden Tax: Transaction Costs
August 14, 2017
You Still Get Paid
August 9, 2017